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Us 18, Sandra Smith 7, Washington 7, U.s. 7, United States 6, Caterpillar 6, S&p 6, New York 5, Janet Napolitano 4, Cheryl 4, Dennis 4, Connell Mcshane 4, Delta 4, Europe 4, China 4, Elizabeth Macdonald 3, Boris 3, Lifelock 3, Lauren 3, Cardinals 3,
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  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    March 4, 2013
    11:00 - 12:59pm EST  

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no hint of armageddon. charles: our economy is in trouble. >> he inherited a bad economy. what can we say. >> maybe it will not be the armageddon that we thought it was going to be. stuart: the sky is not falling. charles: the president is very nervous right now sitting in the white house. stuart: we brought you janet napolitano speaking this morning. she is not quite sure which airport suffered delays because of the silk luster over the weekend. do not shout at airport employees, it is not their fault. charles: you have to make sure you put it in the right direction.
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it is those mean republicans. >> are we paying them to alarm the american people? stuart: no. that is what we are getting. >> the "new york times" said that. stuart: i cannot believe that. charles: there will be a delay at the los angeles airport and the new york airport. stuart: no. republicans are behind it all. >> the "new york times" came out before janet napolitano made her statement. stuart: dagen and connell, it is yours spew forth the last time i flew, stuart, the flight attendant asked for a hug. it was a woman.
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i look so friendly. i am dagen mcdowall. connell: i am connell mcshane. do we have the automatic budget cuts? we will find out if it clears the way for the market to reach the all-time high. dagen: the cuts are not the ideal way to get things done. spending needs to be cut. we will talk with our laughter about the best way to get this country back on track. connell: this series on the cyber of fact. you will hear from one of of president obama's go to experts. dagen: tory burch.
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connell: sandra smith is on the floor of the new york stock exchange. sandra: good morning. stocks that are down across the board. the dow off about 37 points. percentage change lies, that is the worst performer. the s&p 500 down about two. the s&p is hanging onto 1500. the dow hanging onto that 14,000 level. ten of the dow 30 are in the green. twenty of the dow 30 stocks are in the red. best and worst performers. caterpillar and hewlett-packard are the biggest losers to the downside, trading down by more than a full present.
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uncertainty about the jobs report at the end of the week. back to you. dagen: with the fiscal cliff and massive budget cuts behind us, is there anything stopping the dow from hitting an all-time high? companies are more profitable than they were. >> sure. more profitable now than they were back then. they pay a higher dividend than they did back in. they have access to cheaper money. the other thing is, they have a much more productive worker. i got a call last week. last night, i was up for a couple of hours making sure i was sharp for today. did you work last night?
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dagen: no. more people i know are working nights, weekends. this is an advantage to nights and weekends. dagen: they are starting to see major corporations announcing layoffs into the thousands of people. is that a sign that that is the only way these companies can maintain profitability and that is by trimming their workforce. >> what is happening is the productivity is hurting the american people. because they are so good at their job, live people are needed. let's look around the country. let's look at places where oil and gas is being taken out of the ground. last week, we had the isn any factory numbers.
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they were much better than expected. why? we make oil at about $0.80 on a dollar. right now, companies are coming to the united states to start to manufacture their goods. on the oil and gas sector and manufacturing sector, you will continue to see growth. that growth will outpace. that will lead unemployment down over time. dagen: with money coming into u.s. stocks with individual investors, is that more troubling than it is encouraging because retail investors tend to be very late to the party? >> i do not think any money is coming into the market at all. i think comparatively, it looks
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good. their overall picture, it is just a little trickle of that money. looking at major inflows, the numbers would have to double, triple, quadruple. we do not want a straight up. we do not want five or 6% a month. we would like to have nine or 10% a year. all this political wrangling has been good for the investor. it has given an opportunity to buy stocks cheap. dagen: thank you so much. be well. connell: somebody just mentioned washington. let's talk about comments from janet napolitano. the pain is already being felt from the automatic budget cuts that are starting to go into affect. even before furloughs are
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announced later today. peter barnes reporting from the white house. peter: we have not figured it out yet. janet napolitano saying this morning that there were "very long lines forming at some of the nation's airports." she was not specific, but she mentioned o'hare, los angeles and atlanta. no delays at new york airports, but they could be coming shortly. she said this is because of the sequester. the problem is, we have been asking around and in a notably have heard of no delays at these major airports. as you mentioned, although furloughs that are supposed to come under the sequester, she said, are not going out until
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today. here is what she said about all of this. take a listen. >> now that we have institutionalized a hiring freeze, we will begin sending out furlough notices. we are already seeing the effects that some of the ports of entry. some of the big airports. some of them had very long lines this weekend. we have reached out to tsa to try to get some answers. so far, no response. as soon as we get a response, we will get back to you. connell: thank you, peter barnes. this idea, the whole sky is falling, we get past friday and now this long line at the
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airport, with this backfire on the president bush and mark in the longer term, it will probably backfire. >> the republicans are in such rotten shape. connell: how do you respond to that? the republicans are like that sinkhole in tampa. they are just going down into nothing. connell: what will the economic consequences be? the stock market does not seem to care.
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>> growth is about 1.4%. very tepid. of about a half percent in the fourth quarter. if this reduces economic output and we get some real world impact. connell: i think the market would be more likely to be impacted. to have more likely, to have an impact on the market would be the next round of it. >> certain things are happening that we have not talked about yet. the payroll tax coming back in. the new poll, 55% of people say
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their own economic situation is worse than it was in october. connell: isolated areas of the country that will feel it worse than other areas. what john is talking about, especially with the payroll tax, a lot of people are feeling that. >> it is hitting low income consumers. there are a whole bunch of factors swirling. in the longer term, it could hurt the american economy. as their own personal economic situation deteriorates and there is mayhem in washington, which we are talking about all the time, they say, my life is getting worse because these clowns have screwed things up. did you have everything going
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together. connell: great to see both of you. thanks a lot. dagen: former reagan advisor, art laffer, we'll talk with us about the spending problem in this country. the latest cyber attack hit over the weekend. the biggest threat to our nation's security. the local >> announcer: you never know when, but thieves can steal your identity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind. >> announcer: just one little piece of information and they can open bogus accounts, stealing your credit, your money and ruining your reputation. that's why you need lifelock to relentlessly protect
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connell: later in the hour we will talk much more of the cyber attack. dagen: stocks now and every 15 minutes. sandra: moving in the opposite direction. google shares hitting a new all-time high. they just recently entered into the 800 club. apple shares, while google hitting an all-time high, apple hitting a 52 week low. down another couple percentages on the procession. two very different stories for two technology companies and am not about money still still flowing into google shares. a lot of analysts asking the question, has google gone too far, too fast. a lot of people are wondering if
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google shares are topping out. they have been dominating the search base. connell: thank you, sandra smith. dagen: it is time to make money with charles payne. connell: talking about profits from virtual offices. charles: even though, i guess, if you work in a large corporation, you kind of take it for granted. this company eight by eight, did it twice with you guys last year. almost hit eight dollars earlier this year. it has pulled back. i think this pullback is a good entry place. we talk about how i like these old survivors that have gone through the ringer. connell: my wife could not stand it because the calls kept
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dropping out. charles: i think they have gotten their acts together. their margins are going up. what i like about the company is they talk about their previous businesses. 23% used to do business at at&t. 5% bondage. taking market from everyone. i think the stock will get a boost from these conferences. dagen: you look very nice. charles: that is why she gets the hogs at the airport. dagen: i always look like i need a hug. connell: moving right along. the catholic church beginning its search for a catholic pope.
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dagen: as if washington did not have enough to worry about, old man winter is now bearing down on our capital. take a look at world currencies and how they are holding up against the greenback today. ♪ ♪music plays thank you orville and wilbur... ...amelia... neil and buzz: for proving there's nowherwe can't go. but, at some point... giant leaps gave way to baby steps...
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>> i am lauren green with your fox news minute. at the vatican, cardinal's are meeting. more than 140 cardinals are in rome and 103 of those cardinals will select the roman catholic church's next leader. more than 45 people are dead in pakistan. 146 are injured. a car bomb struck an apartment building last night. muslims are demanding government protection. a mississippi baby born with hiv appears to have been cured thanks to stronger than usual treatment for newborns. the child is now two and a half and has been off hiv drugs for about a year and shows no signs of infection.
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this could lead to big changes in pediatric aids treatment. back to you. connell: steve forbes on the richest list. there are some newcomers. that worth $1.2 billion for bill ackman. tory burch, dagen -based reference to earlier. second youngest billionaire. congratulations to her, as well. who was the youngest self-made? dagen: from spain. women who actually make something and produce something and then some dude who just moves money around for a living
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becomes a billionaire. connell: what is the woman's name? sara blakely. dagen: from great news to bad news for greece. reclassifying the country from a developed market to an emerging market. the money manager which designated greece a developed nation back in 2001 said since the company began revealing unsustainable levels of public debt since 2009, it has been an unfortunate economic tailspin. any opportunities in the greek economy have become inherently riskier. connell: there you go.
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the right way to cut spending in washington before returning to greece. art laffer will be talking about all of this coming up next. dagen: at the growing threat to our nation online. are we as a nation prepared for the cyber world attacks? the weeklong series of cyber threats. here are some of today's winners on the s&p 500. ♪ ♪ [ female announcer ] from tracking theus. ♪
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connell: we have our first installment of our cyber threat series. are we prepared? we'll talk about one of the president's former top advisers on this topic in just a few minutes. the series lasting all week long. then the spending problem in d.c. former reagan adviser says there's a right way to deal with the budget crisis. he's coming up. and if there isn't enough to deal with down in washington, now there's quite a storm brewing. snowfall expected some time tomorrow evening. we'll have the latest on that as well. dagen: right now it's stocks with sandra smith and caterpillar, what it's doing to the dow. >> barely positive on the year is one of the worst purchasers today. cat shares, volume trading just above average right now, down a couple of percent on this session. for the month it's lost about 8% but it's planning to cut the work force because of higher job costs, higher labor costs, weakness in europe and specifically says that it's cutting 1400 of its jobs at one
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of the main manufacturing plants over in belgium because of that weakness in europe. so caterpillar shares definitely one of the biggest laggers in today's session and the stock, everybody watching this one because it's a big winner the past several years. large manufacturer of farming equipment. it's part of the agricultural boom. it, too, is seeing the effects of the slowdown in europe and the broader economy and they're laying off workers. we're hearing from several companies these days. dagen: thank you. a new survey by the national association for business economics reveals that most economists do not support the current spending cuts that started over the weekend. 58%, however, say that cuts should be focused on entitlement programs like social security and medicare. joining us is art laffer, former adviser to president reagan but is this what we're seeing with the sequester cuts a down payment, if you will, to something bigger done the road if the economy remains stable
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even with the cuts? >> yes. i hope it does. i would love to see a real serious talk about cutting spending and especially entitlements. that's where it is. all of this talk about raising taxes is really way off base but spending cuts will, in fact, spur the economy, i think, and we need a strong economy. >> dagen: we do given that it was barely growing at the end of the year but in terms of the white house, do you expect it will get anything in addition to the cuts we've gotten through this sequester from the white house because, again, it is very clear that the leaders of the country and the democrats think that the way to stimulate is through spending and even more government spending. >> i know but it's better to stimulate through tax reductions, not increases. there's far more comfortable than our spending increases and the president has gotten a huge tax increase already this year. i mean, just look at all the
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conversation people have about the payroll tax increase and the income tax increase and the capital gains and all of these tax increases have been put into place and, you know, frankly we don't need more tax increases. we need spending cuts. >> dagen: you don't think that payroll tacks should have been left where they are. >> i don't. you're right. dagen: because, again, it was a temporary cut and that's one of the issues -- >> no. dagen: it was a temporary payroll tax cut that was extended. >> it was. dagen: why are you in favor -- why do you favor returning the payroll tax to where it was but not like other tax cuts? because again, the bush tax cuts were supposed to be temporary as well. >> sure. dagen: they were esigned to sunset. >> my view is you want the lowest possible rate on the broadst possible tax base and all taxes are bad when you look at them. they all discourage doing something good so therefore, what you want to do is you want to have your taxes collected in the least damaging fashion. and the payroll tax is about as god as you're going to find.
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it's a low rate, broad based tax. i wish it was a flat tax like jerry brown proposed in 1992 or steve forbes has proposed. that would be the best of all but you never want to have the higher rate taxes because you don't get the money and you cause damage to the economy and that's a double loser. dagen: in that survey we referenced at the start of the is heing many, 95% of the economists surveyed thought that the tax rode should be reform with most of them also saying that it should raise in some way more revenue. do you agree with that? would you be comfortable with a tax reform if it raised more revenue? >> i would. i don't specifically want it to raise more revenue static but i surely want it to raise a lot more revenue because it creates economic growth, dagen. that's the key to that. lower rates and broaden the base, if you do that, you're going to get terrific growth in the economy, you're going to
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collect more taxes and you're going to do it because you get growth, not because you raise rates. raising rates is not the right thing to do. dagen: put some odds on whether we get tax reform before the end of the president's term? what are the chances? >> i think there's a good chance we'll get it in the corporate tax code. i think there's a lot of movement. we'll have lower taxes. we're the highest and the only ones with tax foreign earnings at u.s. rates which is really awful. if we lowered those rates and broadened corporate tax, we can collect lots and lots more revenues and cause a boom worldwide. that's what i really think will happen and i'm really looking forward to it. i think it's the right thing to do and i think that the democrats will sign on. i mean, they've clearly not gone against lowering rates in the corporate area and broadening the base so i think a good compromise could come. dagen: i'm looking forward to
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seeing you again. >> i missed the hug. i'm jealous of charles. i'll not chopped liver. i love hugs, too. dagen: it was a t.s.a. agent that asked me for a hug. it was a female agent. but again, they got a lot of time on their hands clearly. connell: there's so many jokes embedded in the story. dagen: make one. connell: no. i'm not coming near you. that might have been a scene there at the airport. speaking of the airport and -- dagen: i turned around and did this and spread eagles. she didn't like that. connell: see? winter weather another concern for the nation's capital and for those travelling in the country. more coming up. dagen: and latest cyber attacks. we'll talk about that and the bigger picture, whether we as a nation are prepared for a major
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>> a short time ago, minneapolis fed president called for zero
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interest rates until unemployment drops to 5.5%. he said job market troubles are mainly related to a lack of demand. elon will start offering a 20% cash dividend linked to performance of the schlerosis treatment. so far the two companies have split the earnings of the drug but last month, the bio gen will take over ownership for a cash payment more than $3 billion and future royalties. and global revenue from app store s is expected to raise this year. according to technology research company, consumers are estimated to spend on average about two hours a day on apps and that's the latest from the fox business network, giving you the power to prosper. financial house on stocks, bonds, and insurance... and then saw it blow away with the first winds of economic change. when mary lost her husband, she
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evernote. >> it's falling like dominos. another technology firm hit with a cyber breach taking down some of the biggest names in technology as an industry. here's a list of names just hit over the last month or so. facebook, jeep, burger king, twitter accounts, apple, microsoft and now evernote to the ever growing list. this company is a note sharing service, an app very popular on the iphone as well as android phones. the company saying that on their website saying, quote, in our security investigations we found no evidence that any of the content you store in evernote was accessed, changed or lost. we also have no evidence that any payment information for evernote premium or business customers were accessed. this situation is still under investigation but the attack did follow a similar pattern that
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happened at facebook, twitter and other websites but it's also different in the fact that it did not take advantage of a java vulnerability like the other ones so they're still trying to figure out what's going on. evernote has access to 50 million people and if you are a user of that amazing app, i know i am, i love it, they are recommending that you change your password immediately. so another website to add to the list, guys. connell: all this week, markets now taking an in-depth look at the cyber threat to your money, your business and investments and we kick off the series with rod joining us from the middle east and doing so via skype. he's a former c.e.o. to a huge non profit and the former director of the national cyber security center who is in charge of our nation's cyber defenses. he knows more about this than anyone else. his book is called "the star fish and the spider." i'm going to start the most
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general terms and we'll work throughout the week to be more specific on this but when people come up to you, knowing your background and just say, man, i'm hearing more and more about the cyber threats, one that was just reported on and the others, are we prepared? what's your answer? >> yeah. you know, the internet was designed for openness, flexibility and information sharing and maybe more than we really want to see. the reality is, if you're connected, you're vulnerable. you're talking about the top technology firms in the world being hacked. and those guys are good. the reality is, if you're connected, you're vulnerable but there are steps we can all take to improve our position and this is just one of the greatest global challenges we'll face over the coming few decades. connell: so how would you specifically grade us in the united states in terms of being on the road to being prepared? >> sure. well, you know, the united states as an entity is very sophisticated in its capabilities but the dilemma here is that cyber defense is
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about 1,000 times more difficult than cyber offense which is what hackers do when they try to break into corporate networks so the advantage is really to the hackers at this point so the u.s. has some terrific skills, some phenomenal skills, that doesn't make it any easier for all of us to protect our networks and our system. connell: i'll ask you how we make progress and do things that we're not doing a little bit better but i'm also very, very curious about what we should be most concerned about because in the news lately as been the story about the chinese military, you have that, we've had stories about the iranian government and/or military, about the russian government but we also have, you know, stories about terrorist networks and then finally, we get stories from time to time about just lone wolf hackers so in the order of importance, how should we rank those in terms of what we should be most concerned about? >> sure. the long wolf packers are the lesser threat overall.
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criminal networks are the next level. then the criminal networks where the terrorist networks would fall would be the next level and then the highest level of skills and capabilities as you pointed out is state actors. they have tremendous resources and they can really wreak havoc or get the information they want to have. connell: the united states itself in terms of maybe the virus that gets mentioned has capability along with the israelis, are there other countries that are real big players in this? >> you know, james lewis has shared, the u.k. is a sophisticated player. there are an estimated 100 countries that are investing in cyber offense capabilities. that's a large number. connell: to get back to the original point about what we should do about this, what shoulded role, and you played a part in working for the government, what should the role
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of the u.s. government be in protecting its people from the cyber attacks? should it be in mandating the companies as is being discussed, do more on their own, putting more rules in place? should it be a direct role, whether it's government agencies and/or the military getting rov involved? >> i think the government has value to add, a role to play but it cannot secure all the networks and devices inside this country any more than it can secure all the time roads. it's tragic that people die on the highways every day and people are going to get hacked every day on the internet so government can come up with good guide lines, good regulations. i think the recent executive order from the white house is very good, very balanced and it focuses on getting government to do more information sharing with corporations and arg niez more activities with the vertical sectors such as banking, industries, chemical industries, et cetera. that's where the government should be. the military has a role but that's really overseas engaged in warfare and international
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issues. connell: finally, and you're right about the banks. so many stories. we've done so many about the banks here in the last few weeks and months and the final thing is for you, somebody who is an expert in the field opposed to those of us just trying to play catchup and starting to get interested in it because we've heard so much about it, what keeps you up at night? what are you thinking about now? maybe something not in the headlines. don't scare us too much but what keeps you up tonight today? >> sure. i think we all worry about the industry attacks, things that could take out the power grid, things that could affect petro chemicals. those kinds of things. it's dooms day, very concerning scenarios. we're all learning here. no one is truly the final expert on this topic because it's just so complex, evolving every day. i think our teens often know more about this stuff than we do
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and often they're the hackers that are used and getting hired. connell: maybe those are the people to ask more and more. former head of the national cyber security center, great start for our series and we'll continue throughout the week. thank you for joining us today. >> thank you for the invitation. connell: as we report on the cyber threats throughout the week in this series, we'll also be asking some of our regular market guests and contributors for their stock picks in the area and david of point wealth management has two. he likes symantec and also likes check point software. so there's those stocks today. symantec is up, check point is down. next week, dennis kneale will be talking. dagen: stocks now and sandra is looking at food stocks. new all-time highs. >> yeah.
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on a down day for the markets, food stocks considered a safe haven by many investors. they continue to get a lot of attention. hershey and hormel hitting all-time highs in today's session. con ag ra hitting a 15-year high. they're outperforming the 6% gain of the broader stock market as the measure by the s&p 500. but guys, this is investors buying stocks, names that they know. hershey the name band -- candy bar. investors really flocking to the names they're comfortable with and that they know right now. while you're seeing those green arrows, broader stock market in the red. take note we're well off session lows and in fact, the nasdaq looking like it might kick into positive territory, just down about .2% right now.
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so continue to watch that. back to you. dagen: thank you. connell: as if washington doesn't have enough on its plate, a winter storm being dubbed the snow quester. dagen: i'm so glad you had to say that and not me. connell: it's a figure just somebody would use that kind of language. it has to be a local weather person. we have the fox center coming up with that. dagen: we're not too sophisticated to read it. connell: not at all. dagen: speaking of winners, not connell but these are on the nasdaq today. with the spark cash card from capital one...
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>> as if capitol hill didn't have enough gridlock, a snowstorm being dubbed -- not going to say it -- is headed for d.c. in the next day or two. connell: maria has more. dagen doesn't want to say snow sequester. it is cheesy. >> these names are usually cheesy. we're not 100% sure yet as to the exact track the storm is going to take or as far as how much snow we're getting in d.c. it will all depend on the track and how much cold air is in place as the system heads into the area as we head into wednesday but it does look like right now we could take a look at five inches or more of snow across the d.c. area. we all know that area can't
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really handle too much snow very well across portions of baltimore, d.c. but again, looking a -- at that system, we have winter storm warnings in effect across minneapolis, parts of wisconsin and also in chicago. this is where we expect the storm to impact the areas today and also into tomorrow with anywhere between six to 12 inches of snow. wind gusting over 20 to 30 miles an hour so that's a big concern. otherwise, right now already looking at those winter storm warnings in effect across d.c., baltimore and the portions of the states of west virginia and these are the snow totals we're expecting. minneapolis six to 10 inches. locally higher amounts especially towards wisconsin. dagen: thank you so much. from insta gram to insta cam, polaroid is teaming town bring insta gram to life. the two companies have created a digital camera designed to look
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like the photo sharing app that will allow users to take photographs and then print them with insta gram filters. they hope to have the device hit shelves sometime next year. filters now with twitter, with facebook and with -- well, i mean, facebook within the facebook app itself there's a filter. connell: so i wouldn't have. is that cool? will some people be interested? i guess they will be. dagen: this is my camera is my phone. connell: crying wolf? maybe. homeland security secretary is out with the comments today claiming that the budget cut pain is already being felt at the airports before the furlough notices go out so we'll see. cheryl and dennis are coming up and they'll have a fact check on that the next hour. dagen: the cyber threat to the u.s. general michael hayden, former c.i.a. director and the director of the national security agency talls with dennis coming up. [ woman ] if you have the audacity to believe
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dennis: i'm dennis kneale and look who is back. cheryl: hello, everybody. god to be back. blame china. the dow is lower as the shanghai market suffers the worst drop in 2 1/2 years. a guest says that bank stock, though, may be about to buy them. dennis: the budget cut is already being felt at the airport with long security lines but how can that be as furloughs haven't begun yet? ho cheryl: we're talking about internet espionage. dennis: i'll talk to the national security agency.
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he's ahead. cheryl: it is the top of the hour. right now stocks down. sandra smith is on the floor of the new york stock exchange and china kind of hurting our markets over here. what's going on, sandra? >> lots of worries about global growth and that's weighing on market but take note that things could change on a dime here. we're looking at the dow down about 14 points, nasdaq down just a small fraction of a percent and the s&p 500 pretty much flat on this session. this is after we saw a significantly bigger loss earlier in the trading session and remember, the dow closed at its third highest level ever on friday so these are not huge losses following up that close on friday. so keep that in mind. but one laggered in the down weighing on the markets is caterpillar. large manufacturer of heavy machinery and equipment saying it's going to lay off about 1400 workers at one of the manufacturing facilities over in europe. in belgium in particular.
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caterpillar shares down on the day, down on the month and barely posittve on the year. this has been a winning stock for a long time and all those global growth concerns weighing on the stock right now. cheryl: thank you very much. we'll see you in 14 minutes from now. well, the fed is set to release the first round of bank stress test results later this week. could they be a big catalyst for bank stocks when that release hits the tape on thursday? you say that these names are under owned and last year, when we got the fed stress results, it was somewhat of a disaster for j.p.n. but you say it's different this year. >> we think so. there's a number of tailwinds for the grup right now. everyone is focused on residential housing. commercial real estate is a big boom for the growth right now and commercial and industrial growth is very strong. fourth quarter alone, that group
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was up 4 1/2%. the last four years, these banks have spent aggressively cleaning up their balance sheets, getting rid of some toxic, you know, debt and loans that they had on the books so liquidity and capital ratios are improved markedly. we think it's different this time. cheryl: i want to go back to residential. last year especially with bank of america and with citi, the fed rejected their capital plan for both. the capital plan will come out next week. this week on thursday, the fed is going to say whether or not they can handle the stress of a bad economy. a financial market meltdown, if you will. that's what we're going to get this week. where do you think the big names will play? >> we think the stress test will have better results because the balance sheets have been cleaned up to a large extent. they can withstand the stress that they may not have been able to withstand at the last round. it's a bit different this time around, we think the results
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will be improved. >> bank of america up 29%. let's talk percentages for the names you like. where do you think they can go in the next month to two months? general range is fine. >> that's a tough run. from a valuation perspective, this group is still trading around 10 1/2 times earnings. there's room for expansion there so there's definitely room to move to 11, 12 times earnings. we were talking about a 10 to 20% increase. out east over the medium to longer terms. cheryl: when i talked about the disaster, if you will, remember last year j.p. morgan pre-released the results. i'm assuming the fed and the banks are more on the same page this year and not let this situation happen again. >> i think you're right and one of the other things we're seeing which is another tailwind for the group is more capital being returned to shareholder in the form of dividends, buybacks so you have that tailwind and the other is expense control.
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last week, j.p. morgan announced a $2 million cost cutting efforts. cheryl: one of the things we'll get next week is the stock about the dividend but it seems to me the banks are more prepared this year to kind of weather that specific test with the fed. do you think that's going to happen? >> we do. we think they're in a better position this time. cheryl: let's talk about the spider, the 19 biggest banks we're getting the stress test on but this spider, even year to date, up 7%. many analysts come on the show and say financials first part of the year, absolutely performing. can't get anybody to pen down exactly what happens in the second half of 2013 for the financial group. what do you say? >> i think the second half we'll enjoy the tailwinds we're enjoying now. commercial real estate on an upswing, residential real estate on an upswing. you know, as a volatility
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strategist, really nice way to get exposure is through options. cheryl: and you say that activity will be picking up. you do think inflation may be an issue . >> that's the wild card. you know, inflation is the sort of 800 pound gorilla in the room. we haven't seen much signs of it, at least on the consumer side it's been pretty tame. can it pick up? yes. this is an unprus de -- unprecedented exercise. there's always a risk of inflation. cheryl: thursday the first of the two releases. we'll see what happens. >> thanks. cheryl: homeland security secretary says that you can already blame your long lines and delays at the airport on the automatic spending cuts. how is that possible even before furlough notices have been given out? peter barnes at the white house with more. i was flying yesterday. there were no lines that i saw.
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>> that's the issue here, cheryl, as you know. republicans accuse the administration of hyping the possible impact of the sequester and now we've got the comments from morning from the secretary about long lines at several airports around the country because of the sequester which would affect funding at the transportation security administration, the security lines here but anecdotalally we can't find any evidence of that. and now with you, we can't find any news reports on that. we can't find any reports of delays on the f.a.a. or t.s.a. website. the furloughs, she said this morning, are just going out today but she's blaming all of this on a hiring freeze as a result of sequester which means they can't fill positions. here's what she said. >> i want to say o'hare, i want to say l.a.x., i want to say atlanta but i would have to check. the new york airports got
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through okay but that is going to be temporary. so we will see these effects cascade over the next week. >> we've called and emailed d.h.s. and t.s.a. for clarification on the comments. the t.s.a. website, cheryl, does say in a statement on wednesday that there is a hiring freeze, there's no overtime for t.s.a. folks because of the sequester and it predicts that that will cause 1,000 vacancies by memorial day and during busy time periods because of these vacancies and more. wait times of 30 to 40 minutes could double. that's from a statement on friday. cheryl: and luckily for us, it's up today. dennis: so airport delays even before any layoffs occur, or is the obama administration crying woof? let's and the former assistant
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to george w. bush. it almost sounds like wishful thinking. >> i don't know. this is consistent where the administration has been which is crying very loudly that the sequester will have dramatic impact. you know, the example they've chose nen terms of education, we heard last week that teachers were going to be fired or getting pink slips already but that didn't turn out to be exactly the case. i think it's a little bit crying wolf without question that it's going to have an impact on the economy. people i trust put it about 4% or less in terms of growth this year. dennis: 0.4. >> thank you for clarifying that. dennis: $85 billion cut this year, my gosh. let's just spend $850 million in government spending and have 4% growth. where does this math come from? >> you know, my sense is that,
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look. if we're serious about economic growth, we've got to be serious about having growth policies which certainly doesn't mean raising taxes and it also means finding real savings. dennis: i ran some numbers and found if you look at government's 2.6 something million employees and the 750,000 jobs cited by obama administration saying these jobs could be laid off because of cuts, that's 26% of the federal work force, the equivalent yet of only 2.4% cut in spending. aren't these numbers suspect? >> i'm skeptical of them. let's say that. my sense is that we're talking about a less than 2% cut across the government, across the board. if you're a manager worth your salt, you can find that type of savings without, you know, upsetting central services and so on. i think the challenge is on the administration. dennis: aren't republicans selling the bad effects of the sequester, especially when they try to tag the obama folks with
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being the first to suggest it? >> there's no question it will impact negatively our defense readiness in the country and i think from the republican side of the ledger, that's something that people are concerned about. there are some of my friends on the republican side of the aisle that see this as at less an effort, although a blunt and sort of not efficient effort to reduce this size of the government and that's something that's a positive but no question about it that these are real cuts and they'll have a real impact. dennis: do you see any longer term bad effect of this crying wolf? because it seems like a lot of voters and a lot of traders on wall street are tiring of crisis. they have crisis fatigue. >> no question about it. look. it damages washington's credibility and damages the president's credibility to some extent when there will be a new crisis that will sl v to meet with respect to the c.r., the funding that's coming up towards the year, funding the government for the rest of this fiscal year
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as well as we're going to have another conversation when we reach the debt limit, you know, call it may to the fourth quarter of next year. dennis: interest rates on debt double overnight. >> that is a crisis. dennis: thanks for being with us. >> thanks for having us. cheryl: government spending cuts are weighing on oil prices. oil hitting new lows for the year, bracing through a key technical level. phil will explain what's going on. dennis: that's a bonus for the economy, i think. and latest cyber attack. users have been told to change their passwords. cyber threat series continues in 20 minutes. ♪
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cheryl: you've got the dow in the red slightly but caterpillar a big drag. worried about a slowdown especially in the chinese real estate market hurting the dow. we have team coverage for you. dennis: phil, oil is at new lows for the new year. charles payne will show us how to make changes on the auto nation. >> thanks. we are watching the shares in the dow jones industrial average still down about 22 points but as you do look at the drop in oil prices, that is weighing on shares of some of the raw materials stocks here at the new york stock exchange. dow down 25, nasdaq composite down four and the s&p 500 down just about 1 1/2 points. it's this month of march 2013 that we are entering the fifth year of the bull market for the stock market so that's something for you to watch. >> i'll tell you, i'm looking at the oil and gasoline prices
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plummet today on the wholesale market. look at crude oil prices. they fill the gap that they left last december. this is the lowest price we've traded since before the new year, down below $89 -- or down below $90 a barrel now. the reason why the prices are down right now, concerns about china. they're raising the rates on their home purchases, their service sector has fallen down right now but the good news is that's bringing down our dow futures. we're down over 23 cents from the high on the wholesale prices. that means the retail prices should be coming down soon to a station near to you. back to you. cheryl: all right. thank you very much. appreciate it. dennis: and it is time to make some money with charles payne, the salaries talking about auto nation. charles? >> auto nation recently pulled back from the perfect top formation, guys. they came out with february sales numbers. i'm impressed. overall sales are up 6%. the premium luxury up 19%.
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absolutely phenomenal. this is a stock that listen. the macro backdrop for this is simple. average car is 12 years old. sub prime loans became almost 25% of all auto loans. that's significant thing. maybe something for us all to worry about later on down the road. the average fica store now down but more importantly, wayne took a fragment of the industry, taking a fragmented industry, the same thing he did with blockbuster and waste management. what i like also is they'll rebrand all of these little local ones they have. you know, they took over all of these auto companies and auto dealers but they kept the names. you know, come on down to desert and get your free wheels. peel like, you know, auto nation, people now i think, appreciate the brand name and i think that's going to help them as well. dennis: they probably rolled
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them up cheap so you're buying at fire sale prices. >> i think so. mike jackson has done an amazing job running this company. the stock pulled back recently. i think a move about 45 takes it back to the old highs. i'm looking for it to trade north. cheryl: there's so much vehicle destruction in the northeast in the storm s. that coming? >> i'm looking for this more as just a pure play on the fact that it's easier right now for many people just to buy a new car with no money down than to buy a used car where the prices have gone through the rule because of cash for clunkers and some other things. i've watched television where i've seen a series of commercials show one off and the show came back and everything was 0% down. come down and get a car, get furniture. we're in a 0% economy right now. cheryl: money is free. money is free. dennis: that's a little on the ice there. >> that's a different segment.
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cheryl: i feel like the concept. take the car now and here you go. you don't get the best price but it's off your hands. thanks. >> see ya. cheryl: catholic church begins the search for a new pope. your fox minute is coming up. dennis: and the finder of herbalife, bill ackman is not the founder of herbalife but he's joining the forbes billionaire. we'll run down the last just ahead. it's a new day.
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>> i'm lauren green with your fox news minute. at the vatican, cardinals are meeting but have not yet decided to a date for the conclave to choose the next pope. more than 140 cardinals are in rome and 103 of those cardinals are electors who will select the roman catholic church's next leader. britain's queen elizabeth was smiling as she left the london hospital a short time ago. 86-year-old queen felt ill on friday at winder castle with a stomach ailment and she was
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taken to the hospital yesterday as a precaution before being released earlier today. it's the first time the queen has been hospitalized in a decade. and latsia has applied for the euro zone. they'll be the 18th country to develop the agency. european central bank will likely decide on their application in june. now back to cheryl. cheryl: thank you. the other person in the building that loves the conclave as much as i do. thank you, lauren. talk about a blow. military contractors immediately facing a whopping $46 billion in spending cuts. but iron i can jolly defense stocks were in the green last month. here is more on this story. jeff? >> in the red right now. this is what sequester looks like, cheryl. take a look. they're making blast mats here. somebody is about to do some spraying on the mats at this
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location in o'fallon, missouri. show the viewers what sequester looks like. this is a factory that was filled with workers and materials and now you have a stop work order. >> the contract was cancelled and we've had to lay off about 19 people. we had 26 employees here last month and we're down to five. >> take a look at this letter he got from the marine contracting unit. unfortunately, the united states marine corps will be cancelling the new helmet program at this time. sequestration process is impacting many programs from a funding perspective. you have one line left. you make both helmet shields for blasts as well as the mats that are in the base of military vehicles, correct? >> we make the blast mitigating floor mats for the military and we also manufacture helmet padding for inside the ballistic
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helmets. >> just one of many defense contractors. take a look at defense contractor stocks. maybe you see what the mats look like. that's what's in the base of the vehicles that help when there's an i.e.d. that explodes under the vehicle. defense stocks largely down today and if you look at the defense contractors, not great news for them even though year to date, the defense scenario space e.t.f. seems to be doing well. i don't know if they'll be continuing to do well or not. what's your prospects? before we get away, i don't want to step on the mat here, this is the material the government has contracted for. maybe you see the sign on it. do not touch pending government claimed disposition. they'll have to pay for that whether they take the mats anyway. >> exactly. they've just stopped the contract. we already have materials on hand to build the mats and we're not allowed to provide the critical safety items to the troops that they need. >> interesting. this is the face of sequester. you wonder what the impact has
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been? it won't be much in some areas but right now, the impact is here in o'fallon, missouri. cheryl: thank you very much. dennis: fosh $ out with the annual list of the billionaires. a few newcomers join the list, including bill ackman, the hedge fund manager over herbalife. he has a net worth that's said to be $1.2 billion ranking him 1175th in the world it says here. cheryl: and tory burch. she's become a power house. now she's a billionaire on shoes and clothes. dennis: took her husband's name and built it into something bigger than he did. i would hate that as a divorced guy. cheryl: and i love the forbes list. i used to work there. businesses are up in arms over what they see as an i.r.s. crackdown on outside
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contractors. liz mcdonald is ahead with the bottom line. dennis: and cyber threat. how deep does cyber threats go? i'll talk to the director of the national security agency. cheryl: and we'll have more from our nation's airports about delays or frankly, the lack thereof falling homeland security chief's comments about the budget cuts that caused long security lines that really weren't there. we'll be right back. >> meet bill and melissa. like many, they built their financial house on stocks, bonds, and insurance... and then saw it blow away with the first winds of economic change. when mary lost her husband, she
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>> 30 minutes past the hour.
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stocks every 15 minutes. sandra smith is on the new york stock exchange. sandra: the dow down 52 points. the one stock we are watching that is in the green is hess. it is exiting the retail business. it is becoming a exploration company. this is a big move for hess. year to date change, up 31%. getting out of that oil risky business. back to you. cheryl: sandra, thank you very much. we will see you in 14 minutes. ♪ dennis: we continue our weeklong series of cyber threats. connell mcshane talked with rod,
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former national security director, that has this warning for us. >> the internet was designed for openness, flexibility and internet sharing. if you are connected, the reality is, you are vulnerable. dennis: you are vulnerable. general hayden is now principal of mobile security advisory firm. thank you for being with us. who are the biggest players that we have here? >> well we are seeing right now is coming from government. all nations spy, including our own. what the chinese is doing is unprecedented. they are not just after state secrets. they are going after industrial and trade secrets in a way we have never seen before.
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dennis: the pentagon, i believe, if you hack into defense systems, we look at that as an act of war. do we need to establish a more serious repercussions for hacking into private networks? >> dennis, you have hit a very important problem here. we do not have a good understanding as to what constitutes warfare, espionage, when it comes to the cyber domain. what we are seeing now, just picture this, this is a nations state. not attacking another nationstate, but attacking american industry. that is an on incredibly uneven playing field. they are doing this for economic
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advantage. i think there should be cost for the chinese and the economic relationship with the united states. dennis: 141 companies, thousands of attacks over the last six years traceable to the doorstep of the people's liberation and china. they are also getting into electrical grids. >> it is a real danger and a real concern. most of us going out there right now, dennis, it is espionage. they are stealing our stuff. that is bad enough. there is not enough to steal on, what we call, a skater grid. in the cyber domain, if you can penetrate a system and live on it on detective for a long period of time and extract data
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from it, you already have sufficient control over that system to affect damage on it. the fact that they are even in these positions is dramatic. dennis: some of these attacks have been going on for a period of years without the host target company even realizing it. it seems like we have this bermuda triangle. you have vendors who do not want to take on the extra cost. you have customers who do not want to pay the extra cost. this problem has been here for a decade. >> it really has. i have seen this in my four years since i have left government service. i have seen this problem migrate in american industry from the cio and the cto up to the top deck. they now see this as an
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important part of doing business, if they expect to do business in the cyber domain. i do see businesses strapping on more of a responsibility to defend themselves. now, dennis, businesses can only get so far. business has a certain responsibility to take most of the nuisance attacks off the table. when it comes to defending them against the nations state, our government has to do something also. dennis: thank you so much for being with us today. >> thank you. dennis: as we report on the cyber threat dropped the week, we are already asking our regular market checks. congressman provides information technology including wireless
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cyber community. here is how they are trading today. the whole market is down. this may be down as well. connell mcshane will talk with scott borg. cheryl: connell looks so serious in that picture. it will be a big, great interview. i just know it. las vegas taxi drivers are betting on a strike. that is coming up in the west coast minute. dennis: and irs crackdown in outside contractors. elizabeth macdonald is up next. first, let's take a look at the ten year treasuries. ♪
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>> i am tracy byrnes with dear fox business brief. a ratings upgrade has investors bullish for yahoo! today.
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a new york u.s. attorney is objecting to the potential cell of some of hostesses assets. this is in the southern district of new york. it would free spc from any present or future liability claims and limits the government's ability to regulate. budweiser brewing up an ad campaign. the ad shows 71 again cans of drinking water. that is the latest from fox business giving you the power to prosper. ♪ impact wool exports from new zealand, textile production in spain, and the use of medical technogy in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. twe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses
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to read and consider carefully before investing. you are gonna need a wingman. and my cash back kes the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundds of cards and apply online. creditcards.com. dennis: businesses see a new crackdown from the irs on their use of outside contractors. cheryl: a wide range could be at risk of a high tax bill. good news, elizabeth macdonald is here with the bottom line.
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liz: it is basically saying to businesses you are not classifying your workers properly as on-the-job employees. basically, you know, the thinking of the government is you avoid having to pay social security, medicare taxes on them. unemployment insurance. you do not have to adhere to the minimum wage laws. they are in the process of auditing 6000 companies. the department of labor, the irs are hooking up with now 14 states to find these companies that have not properly classified their workers. the irs is losing billions. the department of labor is saying 30% of workers are misclassified. a big push. dennis: trying to improve the unemployment numbers. if you redefine them suddenly, our unemployment doesn't look so
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bad. liz: that is and interesting thing. cheryl: restaurant used. liz: restaurants, hotel companies, truckers, casinos. the penalty can be crippling. a 100% penalty on the business owner if -- for all the payroll taxes owed if they are found to be breaking the law here. the thing is, right now, the facts that the states are sharing information with the federal government -- i am telling you, you'll want to pay attention to this segment and watch it again on fox business. dennis: and other revenue collection effort. thank you very much. elizabeth macdonald. cheryl: it is a quarter till.
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of course, every 15 minutes we have sandra smith on the floor of the new york stock exchange. sandra: delta is delivering its best first quarter in decades. it has not had a profitable first quarter since the year 2000. this is a market day for delta shares. it made note of the rising fuel prices. oil prices still sitting on $90. it did have skyrocketing jet fuel prices. it has said that makes the margins -- nonetheless, delta turning in a very profitable and very healthy first-quarter. something investors are certainly cheering on. back to you. cheryl: thank you, sandra smith. time for your west coast minute. las vegas is second largest cab company is on strike.
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officials say so far the damage has been minimal. asking for better pay and working conditions. drivers walked off the job early sunday morning. speaking of the vegas strip, and asian conglomerate says it will break ground next year on their project. the stock is up $0.33 right now. the new asian investors say they will build a new billion-dollar casino. the new casino will have 3500 hotel rooms. a convention center and a 4000 seat theater. finally, a home designed for bob hope is on sale in california. it will give one lucky buyer 22,000 square feet of living space. that is your west coast minute.
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dennis: j leno is on his way out to make room for a younger host? we have your media minute ahead. cheryl: a pay-as-you-go college. we will talk to the ceo that hopes to save money while helping students save money. dennis: first, take a look at some of the winners on the nasdaq. ♪ at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7,
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you need an ally. hello? ally bank. your money needs an ally. ♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities.
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cheryl: 35% of people under 30 with student loan date were at least 90 days late on their payment at the end of the year. that is up almost 10% from four years ago. were you surprised by the fact that the student loan debt is skyrocketing and it could hurt the economy? >> know, in fact, we anticipate that problem will continue for the unforeseeable future. the student loan crisis is and a q1. for rates and the link with
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these continue to increase. cheryl: we should mention, by the way, you are owned by bain capital. you are online. this is more accessible for students. they are just paying a one-time fee per month. you are not truly taking a chance, are you? >> we take the chance that a student has to go into debt in order to go to school. we believe that students should have the opportunity to pay as they go. we think the students should be afforded an opportunity to pay and complete the program. our graduation rates are very consistent with community
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colleges. we have graduation rates in the 80-85% rate. we offer superior value. we finance about 130,000 students a year with 0% apr financing. the graduation rate is different by program. if you are in the veterinary program, it is the largest program in the united states, we have a very high graduation rate. in some cases, by the way, while the goal is to ultimately go to school, the real objective is to find a job. cheryl: before i let you go, investors, many of them have actually had a big interest in buying securities backed by student loans.
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what do you make of that? what does that mean to you? >> i think the student loan market is not one thing. i think what you are finding is smart investors are taking a fresh look at the student loan marketplace and asking themselves i'm a are there different and better ways to deliver value. there will be more opportunities for the students and provide opportunities for investors. cheryl: thank you very much. appreciate it. >> thank you. dennis: in today's media minute, one of the touch just torch passing in history may be underway. the retiring of jay leno on the tonight show. the fall tv season will be leno's last. that would set up a battle of
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the jimmy. it is faring pretty well. last time nbc try to ease out leno, and yanked conan o'brien after only a few months. hollywood has its first official bellyflop of the new year. jack the giant slayer taking number one at the box office. $21 million. this latest triumph for sure guys everywhere. lord of the rings trilogy. new line cinema, mgm and warner sharing the upside. cheryl: are we -- [talking over each other] dennis: connell mcshane will talk with the director. at 12:00 p.m. eastern, is your
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money safe? we have the cyber threat all week long on fox business. cheryl: i am very nervous about my bank account now. melissa francis and lori rothman are up next. dennis: what is your fair share when it comes to paying income taxes? think some of the biggest tax bills in decades. melissa and lori coming up next. ♪
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